When insiders sell shares, it indicates their concern in the company’s prospects or that they view the stock as being overpriced. Either way, this signals an opportunity to go short on the stock. Insider sales should not be taken as the only indicator for making an investment or trading decision. At best, it can lend conviction to a selling decision.
Below is a look at a few recent notable insider sales. For more, check out Benzinga's insider transactions platform.
- The Trade: Tesla, Inc. TSLA CEO Elon Musk disposed a total of 582357 shares at an average price of $1,027.48. The insider received $598,357,802.91 as a result of the transaction.
- What’s Happening: Tesla CEO Elon Musk’s SpaceX on Wednesday kicked off the Crew-3 mission in collaboration with the space agency NASA.
- What Tesla Does: Founded in 2003 and based in Palo Alto, California, Tesla is a vertically integrated sustainable energy company that also aims to transition the world to electric mobility by making electric vehicles.
- The Trade: Alphabet Inc. GOOG Director Sergey Brin sold a total of 13889 shares at an average price of $2,977.68. The insider received $41,356,984.87 from selling those shares.
- What’s Happening: Alphabet reportedly launched an artificial intelligence company Isomorphic Labs, to discover new drugs.
- What Alphabet Does: Alphabet is a holding company, with Google, the Internet media giant, as a wholly owned subsidiary. Google generates 99% of Alphabet revenue, of which more than 85% is from online ads. Google's other revenue is from sales of apps and content on Google Play and YouTube, as well as cloud service fees and other licensing revenue.
- The Trade: Alector, Inc. ALEC CEO Arnon Rosenthal sold a total of 200000 shares at an average price of $25.00. The insider received $5,000,000.00 as a result of the transaction.
- What’s Happening: The company recently said it swung to a profit in the third quarter.
- What Alector Does: Alector, Inc., founded in 2013, develops therapies for the treatment of neurodegeneration diseases.
- The Trade: The Carlyle Group Inc. CG Director David M Rubenstein sold a total of 2000000 shares at an average price of $58.00. The insider received $116,000,000.00 from selling those shares.
- What’s Happening: Carlyle Group Inc. and TA Associates are exploring a sale of PurposeBuilt Brands Inc, Bloomberg reported.
- What Carlyle Group Does: Carlyle is one of the world's largest alternative asset managers, with $293.1 billion in total assets under management, including $176.4 billion in fee-earning AUM, at the end of September 2021.
- The Trade: eBay Inc. EBAY SVP & General Counsel Marie Oh Huber sold a total of 33621 shares at an average price of $75.49. The insider received $2,538,130.57 from selling those shares.
- What’s Happening: Ebay, last month, issued Q4 sales guidance below estimates.
- What eBay Does: eBay operates one of the largest e-commerce marketplaces in the world, with $85 billion in 2020 gross merchandise volume, or GMV, rendering the firm the fifth-largest global e-commerce company. eBay generates revenue from listing fees, advertising, revenue-sharing arrangements with service providers, and managed payments, with its platform connecting more than 154 million buyers and 19 million sellers across almost 190 global markets.
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